Indian railways to hike fare on long-distance travel from Dec 26: Here's why
While long-distance travel fares will increase, daily commuters using suburban services will remain unaffected, ensuring affordability for regular passengers.
As the ministry of railways on Sunday announced a hike on its fare tariff, passengers travelling long distances are set to bear the brunt under the revised structure, which becomes operational from December 26.
Attributing the spike in fare to the increase in its manpower cost, the ministry of railways in its official release clarified that the increase will have a limited financial impact on passengers. The rationalisation in the fare tariff is aimed towards generating an additional ₹600 crore in revenue, according to the release.
The ministry added that under the new regime, Indian railways will continue its focus on efficiency, cost containment, and operational reforms in order to achieve the goal of affordable and accessible transport for Indian masses.
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Why has Indian Railways increased fares?
Indian railways said that emphasis is laid on strengthening safety through enhanced manpower deployment, with manpower-related expenditure rising to nearly ₹1,15,000 crore and pension cost to ₹60,000 crore. In the financial year 2024-25, the total cost of operations also increased by ₹2,63,000 crore.
{{/usCountry}}Indian railways said that emphasis is laid on strengthening safety through enhanced manpower deployment, with manpower-related expenditure rising to nearly ₹1,15,000 crore and pension cost to ₹60,000 crore. In the financial year 2024-25, the total cost of operations also increased by ₹2,63,000 crore.
{{/usCountry}}Stressing further on the reason behind the revised rate structure, Indian railways stated that it has significantly expanded its network and operations over the past decade and is increasing its manpower.
{{/usCountry}}Stressing further on the reason behind the revised rate structure, Indian railways stated that it has significantly expanded its network and operations over the past decade and is increasing its manpower.
{{/usCountry}}The ministry of railways had last increased travel rates in July 2025.
{{/usCountry}}The ministry of railways had last increased travel rates in July 2025.
{{/usCountry}}It noted that the enhanced measures significantly contributed to safety and efficiency improvements, as the Indian Railways emerged as the world's second-largest cargo railway system. This year, the railways smoothly operated over 12,000 special trains to manage passenger demand.
{{/usCountry}}It noted that the enhanced measures significantly contributed to safety and efficiency improvements, as the Indian Railways emerged as the world's second-largest cargo railway system. This year, the railways smoothly operated over 12,000 special trains to manage passenger demand.
{{/usCountry}}Apart from the fare hike, the Railways said that it is focusing on enhancing cargo loading to meet the increase in manpower costs.
How much is the hike on rail fares?
According to the official release, for those travelling in mail and express non-AC categories, the fare will increase by 2 paise per kilometre. All AC classes will also see a uniform increase of 2 paise per kilometre.
For passengers travelling beyond the slab of 215 kilometres in ordinary class, the fare will now increase by one paise per kilometre.
There will be no increase in fares for suburban services and monthly season ticket (MST) holders. This move is aimed at providing relief to daily commuters. Ordinary-class passengers travelling up to 215 kilometres will also not see any fare increase.
